Greenland Minerals and Energy Ltd's ('GMEL' or 'the Company') 100% owned Kvanefjeld multi-element project contains one of the world's largest undeveloped resources of rare earth metals and uranium (JORC-code compliant), and is ideally located near the southern tip of Greenland.
Feasibility studies are well advanced and demonstrate Kvanefjeld's potential to be developed as a long term, low-cost uranium supply, and a large low-cost supplier of both heavy and light rare earth oxides (REOs).
GMEL is now focussed on a staged development strategy with an initial mine-throughput of 3Mtpa, expanding to 6Mtpa. There are two main steps in the processing of Kvanefjeld ores; a concentrator stage, and a refining stage. The Company has completed the testwork program for the concentrator stage with two successful pilot pant campaigns, and has now finalised a Mine and Concentrator Study.
Key Outcomes of the Mine and Concentrator Study:
- The mine and concentrator (flotation circuit) will produce a high-grade REE-uranium mineral concentrate, along with zinc (6,180tpa) and fluorspar by-products (8,865tpa)
- The REE-uranium mineral concentrate containing 14% total REO and 0.24% U3O8 will then be treated in a dedicated refinery to produce 23,000tpa of high purity mixed rare earth hydroxide, and 1.1 Mlbs U3O8
- Significantly reduced capital costs:
- Overall start-up costs are now estimated at $810M
- The mine and concentrator capable of treating 3Mtpa is anticipated to cost $450M
- The refinery to produce marketable REE and U products is estimated to cost $360M
- Unit costs of production are low; less than US$6.40/kg TREO (after by-product credits) which will make Kvanefjeld one of the lowest cost REE producers worldwide.
- Upon mine expansion from 3.0 Mtpa to 6.0 Mtpa, the unit cost of TREO production drops to less than US$4.90/kg TREO (after by-product credits)
- The incremental cost of recovering the uranium is less than US$37/lb U3O8. Following expansion to 6Mtpa the uranium unit production costs drop to less than US$31/lb U3O8. This will make Kvanefjeld one of the lowest cost uranium producers amongst projects that are being considered for development in the next 5-10 years.
- The initial 3Mtpa Project generates a pre-tax, ungeared internal rate of return of 32% and a cash payback period of 3 years, based on long term prices of US$70/lb U3O8 and US$23/kg TREO*. The pre¨Ctax NPV is US$1,913 M.
(*assumes 60% value recognition in concentrate for a basket price of US$37.80)